Though many economists are predicting demand to grow both inside and outside China out to 2020, such a small market (the REE market) doesn't appear to need or support more than a handful of additional participants. Therefore the focus on factors such as world class asset, top management and sustainability will increase.
We have long believed that "bigger" isn't necessarily "better" in the REE space. The main question investors need to ask is the following: does this company have what the market wants?
We all know that some REEs are more sought after than others (companies with heavy rare earth elements versus light rare earth elements for example). While success for any of these companies will come down to many more factors (see above) than just what they claim to have in the ground, we think the breakdown of heavies versus lights is a good place to start. We've gone on record as liking the following REE plays and choose to discuss one in particular in light of the recent release of its preliminary economic assessment (PEA):
Medallion Resources (MDL: TSXV)
Great Western Minerals (GWG: TSXV)
Tasman Metals (TSM: TSXV)
Orbite Aluminae (ORT: TSX)